Just 6% of MF schemes exited HDFC Bank in past 6 months
Though HDFC Bank’s Q3 results were subdued, mutual funds continue to hold the stock but there are contrarians among the pack. Of the 422 actively-managed equity funds that hold the banking stock, 27 diversified funds exited the stock over the past six months
HDFC Bank was the most-owned stock in the Indian mutual funds industry until December. While the stock has been being part of the top 5 holdings of many equity oriented schemes, some schemes have pruned exposure to the stock over the last few months. Twenty-seven schemes, or 6 percent, of the actively managed schemes that held HDFC Bank shares have exited the stock in the last six months. Most of them exited in August and September. Deepak Jasani, Head of Retail Research, HDFC Securities, says the lender's provisional merged Q1 results and the near-term outlook were subdued. Secondly, the managers of the mid and small-cap funds had the option to move from stable stocks to "momentum ones".
2/10
Quant Mutual Fund exited the stock in August. Sandeep Tandon, CIO, Quant Mutual Fund, said “Since our Predictive Analytics models are showing that the relevance of the banking is declining and hence the valuation multiple will decline, and risk appetite indicators started declining from September 2023. Even liquidity indicators also deteriorated around that time and hence we offloaded HDFC Bank from our portfolio”.
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The HDFC Bank stock plunged as much as 12 percent after Q3 numbers disappointed investors. Kranthi Bathini, Director-Equity strategy, WealthMills Securities, said the main reason for the underperformance is that it is taking time to get the full benefits from the merger between HDFC Bank and HDFC Ltd. The net interest margin (NIM) of HDFC Bank was on par with the previous quarter's 3.4 percent, disappointing the market, experts say. The benefits of the merger will take time to materialise, a factor that has led some funds to pare exposure to HDFC Bank. Here are the top equity schemes (in terms of corpus) that exited from the HDFC Bank over the last six months. Source: ACEMF.
Quant Small Cap Fund AUM as of December: Rs 13,002 crore Exited When?: August 2023 Other schemes in the AMC also exited the stock: Quant Absolute, Quant Active, Quant BFSI, Quant ELSS Tax Saver, Quant ESG Equity, Quant Flexi Cap, Quant Focused, Quant Large & Mid Cap, Quant Large Cap, Quant Quantamental and Quant Value
Aditya Birla SL Pure Value Fund AUM as of December: Rs 5,453 crore Exited When?: August 2023
7/10
Invesco India Growth Opp Fund AUM as of December: Rs 4,641 crore Exited When?: September 2023 Other schemes in the AMC also exited the stock: Invesco India Focused 20 Equity
Mahindra Manulife Small Cap Fund AUM as of December: Rs 3,100 crore Exited When?: August 2023 Other schemes in the AMC also exited the stock: Mahindra Manulife Consumption, Mahindra Manulife Focused, Mahindra Manulife Large & Mid Cap, Mahindra Manulife Multi Cap and Mahindra Manulife Small Cap
Motilal Oswal Large & Midcap Fund AUM as of December: Rs 3,025 crore Exited When?: September 2023 Other schemes in the AMC also exited the stock: Motilal Oswal ELSS Tax Saver
10/10
ITI Small Cap Fund AUM as of December: Rs 1,986 crore Exited When?: September 2023
